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TOMORROW: DON’T MISS OUR CHRISTMAS DAY EDITION The HAMILTON LIGHTS UP FOR 24 PAGES THURSDAY, DECEMBER 24, 2015 Email: editor@spec.com.au GREATER HAMILTON $1.40 inc GST OUR COMMUNITY, YOUR PAPER CHRISTMAS – Page 11 Phone: 03 55 721011 ELECTION ISSUE REX MARTINICH A PRODUCTIVITY Commission report’s call for Sunday penalty rates to be slashed for workers in “hospitality, entertainment, retailing, restaurants and cafes” looks set to become a federal election issue. Arguing that “Sunday trading is now normalised and highly valued by consumers”, the PC called for pay bonuses for working on Sunday should be reduced to that of working on Saturday. Wannon MP Dan Tehan appears already in favour, having advocated for a nearly identical proposal in an opinion piece from March last year. Former Labor candidate for Wannon, Michael Barling, accused the Government of going after the soft target of teenage workers, and claimed the policy would ultimately damage the local economy through lower incomes. “Penalty rates have a legitimate role in compensating employees for working long hours or at asocial times,” The PC report stated. “However, Sunday penalty rates for hospitality, entertainment, retailing, restaurants and cafes are inconsistent across similar work, anachronistic in the context of changing consumer preferences, and frustrate the job aspirations of the unemployed and those who are only available for work on Sunday. “Rates should be aligned with those on Saturday, creating a weekend rate for each of the relevant industries.” Speaking at the launch of the PC report, Employment Minister Michaelia Cash said “the Government’s position on penalty rates has been and continues to be that penalty rates are determined by the independent Fair Work Commission.” “If there is a case for sensible and fair changes to the Fair Work framework, these will be clearly outlined and they will be taken to the next election.” The long standing argument for reducing penalty rates is that businesses are opting not to open on a Sunday as they are unable to turn a profi t due to wage costs. Hamilton has had a lack of hospitality options on Sunday for many years, with only the large chain outlets opening their doors. This has changed recently but the majority of local cafés still do not open on a Sunday. The Spectator contacted a number of local cafes, including those that do and do not open on Sunday, but all either declined to comment or did not respond. One prominent local café proprietor last year explicitly stated that he did not WEA trade on Sunday because wage costs were higher than revenue from sales. On a nation-wide level, the hospitality sector is enjoying growth despite being highly competitive and labour-intensive, with generally low profi t margins. In March 2014, Mr Tehan wrote an opinion piece for The Australian newspaper calling for Sunday penalty rates to be halved. Citing studies of high youth unemployment rates in regional Victoria and Australia as a whole, Mr Tehan argued wage costs were “covering the country in ghost towns on a Sunday”. “The growth in the number of tertiary students deepens the problem. Being a student is a full-time job. They must fi t in study and paying the bills,” Mr Tehan wrote in 2014. “It means non-traditional hours and often working weekends. Yet businesses that are employing students are struggling to keep these positions open, because of having to pay 200 per cent the going rate for a shift students not only want but need.” Mr Tehan told the ABC at the time penalty rates had closed a local bakery on Sunday and “maybe if they were just paying a 100 per cent premium that might work”. Mr Barling, the 2013 Wannon Labor candidate, accused the Government of skipping a fi ght with sectors such as emergency services, who had “strong representation”, and “going after the kids who serve coffee on a Sunday”. “Businesses are important, but the driver of the local economy is households,” Mr Barling said. “(The Coalition) wants to reduce the disposable incomes of households by decreasing penalty rates and a 50 per cent increase in the GST, which will then fl ow on to a reduction in the local economy.” Mr Barling argued that the biggest benefi ts of lower penalty rates would fl ow to large corporations, not locals. “Will the penalty rates reductions only apply to small businesses or will corporations like Bunnings and Hungry Jack’s be given the same boost in profi t? “They are proposing to take income away from local people and give it to companies like Hungry Jack’s, who only paid (equivalent) 1.1 per cent corporate tax (in 2013/14).” A GST increase from 10 to 15 per cent is not offi cial Government policy, though there has been wrangling between State leaders and Prime Minister Malcolm Turnbull over proposals to balance GST and income tax changes with new funding commitments. At multiple times this year, Mr Tehan has advocated for broadening the types of purchases that attract the GST to include items such as fresh food, health services, education and fi nancial services. THER FORECAST TODY A: Sunny KEEPING cool in the summer sun, Rex, a one-year-old Staghound, with antlers and all, was relaxed in a wading pool during the heat of the past week. Temperatures are expected to reach 36 degrees tomorrow for Christmas Day. Keep your pets cool and remember to refrain from feeding them sweets. Photo: BILLY EASSON , light wind, max 25 FRIDY A: Mostly sunny , chance of rain, max 36 151222bj008